“Air Peace Blames Sudden SmartLynx Withdrawal for Massive Losses, Network Disruptions
“Leased Aircraft Withdrawal Exposes Deepening Crisis at Latvian Carrier”.
Air Peace has revealed that the abrupt withdrawal of four wet-leased aircraft by Latvia-based SmartLynx Airlines has caused over $15 million in direct and indirect losses, crippling operations across its domestic and regional routes.
The airline described the incident as “avoidable,” accusing SmartLynx of breaching contractual obligations, collecting full payments upfront, and abandoning the agreement without notice. Air Peace said the leases were secured to bridge capacity gaps while 13 of its own aircraft were undergoing scheduled maintenance overseas.
According to the airline, SmartLynx’s action triggered intense operational challenges, including widespread flight cancellations, delays, and reputational damage.
“SmartLynx had collected money upfront, including over $1 million as security deposits. They knew the rightful owners would repossess the aircraft because SmartLynx failed to meet its obligations”, Air Peace said in a press conference on Friday.
The carrier said SmartLynx withheld more than $5 million of its funds while exiting the country, leaving Air Peace to manage the fallout.
Severe Network Disruptions as Rostered Aircraft Vanish Without Warning
Air Peace said the withdrawn aircraft had been fully rostered for scheduled operations. Their sudden removal created “major gaps” in the airline’s daily flight plan, forcing the cancellation of multiple flights and extensive delays across its network.
The airline added that similar behaviour had been reported by other operators globally, describing SmartLynx’s conduct as part of a “consistent pattern of unprofessional and predatory practices.”
Despite the disruption, Air Peace said it returned three of the four seized aircraft to their rightful owners in good faith, while one remains pending. The airline emphasised that it only seeks the refund of its trapped funds.
Financial Scandal Deepens: BLACKLIST.AERO Flags €238m Debt, Possible Fraud at SmartLynx
The SmartLynx crisis affecting Air Peace coincides with mounting revelations about the Latvian operator’s financial instability.
Aviation watchdog BLACKLIST.AERO recently published extensive findings linking SmartLynx Airlines Latvia to suspected asset-stripping, deliberate insolvency, and fraudulent restructuring schemes.
Key findings include:
- €238 million in outstanding debt owed to 781 creditors
- €174 million owed to companies within the former parent group, Avia Solutions Group
- Massive intra-group debts including:
- ASG Finance DAC (Ireland): €117.1m
- SmartLynx Malta: €38.8m
- SmartLynx Estonia: €12.5m
- Smart Aviation Holdings SIA: €2.3m
The watchdog noted that SmartLynx Airlines Latvia was sold on 23 October 2025 to a newly formed Dutch fund—Stichting Break Point Distressed Assets Management, created only one month earlier.
Just five days later, the airline filed for creditor protection in Riga.
BLACKLIST.AERO concluded that the sequence of events shows:
- Debt isolation before collapse
- Transfer of liabilities away from profitable subsidiaries
- Management continuity despite ownership changes
- Strong indicators of intentional bankruptcy
It recommended coordinated legal action by creditors across Ireland, Latvia, and Lithuania.
Air Peace Draws Parallels With Earlier Syphax Airlines Fraud
Air Peace compared the SmartLynx incident to an earlier case involving Tunisia’s Syphax Airlines, which allegedly collected more than $2 million from the Nigerian carrier and never returned its leased aircraft. The aircraft was declared “under maintenance”, but neither the plane nor the funds were recovered.
The airline said both cases expose the vulnerabilities Nigerian and African carriers face in global leasing markets, calling for stronger regulatory support, diplomatic intervention, and protective bilateral frameworks.
Operations Recovering as Air Peace Fleet Returns
Despite the heavy financial and operational blow, Air Peace says it is now stabilising its network as more of its aircraft return from maintenance. Two aircraft are already back in service, with additional arrivals expected in the coming week.
Air Peace assured that full route recovery is expected soon.“We remain committed to delivering safe, reliable, and world-class flight services. We appreciate the patience and understanding of the Nigerian public.”.
The airline said it is strengthening due-diligence processes for future leasing arrangements and will pursue all lawful avenues to recover its trapped funds.